SunEdison acquires Continuum Wind in biggest clean energy buyout

SunEdison, the largest renewable energy development company in the world by generation capacity plans to generate green energy in India.

The Economic Times reported the company had signed a definitive agreement to acquire Mumbai-based Continuum Wind Energy. While currently only 20 GW of wind farms are operational in the country, the acquisition would contribute towards reaching the government's target of generating 100 GW of renewable energy by 2022.

Headquartered in Belmont, California, Nasdaq-listed SunEdison will acquire over 242 MW of operating wind assets that Continuum owned and operated in Maharastra and Gujarat another 170 MW projects under construction.

The company is building a capacity of 1,000 MW through plants in six states.

This would be the third wind power acquisition for SunEdison. In May the company acquired two renewable energy portfolios, including the domestic portfolio of around 100 MW of Spain-based FersaEnergias Renovables, SA.

The deal value had not been revealed officially but according to sources close to the transaction, Continuum Wind Energy had been valued at Rs 3,720-3,900 crore, inclusive of its debt.

The equity value alone had been pegged at around Rs1,920 crore and according to analysts tracking the sector the company should close FY15 with Rs 400 crore of revenue.

The deal was expected to close in the next 6-8 weeks.

"India is a core market for SunEdison and offers growth opportunities in wind and solar energy," said Ahmad Chatila, SunEdison president and chief executive officer. "With the acquisition of Continuum, a leading wind energy company in India, we have added significant assets and a skilled wind development team to drive further growth in our renewable energy development platform. This acquisition reinforces SunEdison's commitment to India and will drive immediate shareholder value."

"We are excited to join SunEdison at this time of rapid growth in India's renewable energy market," said Arvind Bansal, chief executive officer of Continuum.

"SunEdison's strong global financial capabilities and talented local team here in India position us to capture the incredible business opportunity in this dynamic market."